Living Beyond Means

Manawatu Times, Volume 62, Issue 149, 25 June 1937, Page 9

Living Beyond Means

STANDARDS ESTABLISHED THAT CANNOT BE MAINTAINED 1 ‘EASY TO FORGET HARDSHIPS" (Special.) HAWERA, June 23. “If the individual consolidates dur ing prosperity he will be in a better ! position to render a service to the comJ inunity during a depression," declared jMr C. G. Trotter, general manager of (the Farmers’ Co-operative Organisation (Society, iu a note cf warning to shareholders at the society’s annual meet- \ ing in Hawera on Saturday. “If the [individual consolidated now," he said, “he would not have to put men off during a depression w r hen, if his overhead burden was great, he would have to cut his cloth to meet his income. To-day was the day to prepare for the next slump instead of setting up standards that could not be maintained. Torch of Self-Reliance. “To-day we find on all sides everyone looking to get something out of the Government," continued Mr Trotter. “Tho torch of self reliance handed down by the inoneers of this country is becoming dimmer and if we go on as we aro going it will be out altogether when we hand it on to the next generation. It was throught the grit, determination and self-reliance of tho pioneers that we enjoy all the benefits and facilities that society offers today. ’ ’ Primary industries had just emerged from six years of the most severe depression that had been experienced in this century, and to-day one of the things that struck him most forcibly was how easy it was for such a large proportion of the community to forget the hardships experienced during that period and how easy it was to be carried away on a wave of prosperity, setting up standards which they would be unable to maintain in tho event of any set-back in the prices of primary products. “In times of prosperity wo are too apt to live beyond our means, and when our income is reduced tho effects are felt more severely by reason of the fact that we havo not made provision against this time while times were good,’’, said Mr Trotter. Record Export Season. “In terms of New Zealand currency for the year ended March 31, 1937, the value of our exports was £11,400,000 in excess of the previous year and £26,100,000 more than in 1932, which was the lowest point in the last ten years," said Mr Trotter. “I mention these figures to illustrate my previous remark that wo are passing through a boom period. If our past experience means anything it should surely direct us to the conclusion that it is sound business to consolidate now against the inevitable period of lower returns, which will surely come again."